After climbing 9,589% since 2009 began, Diedrich Coffee (Nasdaq: DDRX) is valued at roughly $200 million today. Shares trade for $34 apiece.
I’m not at all surprised.
Diedrich, which is in the (big) business of roasting coffee beans and then selling them wholesale, boasts superb fundamentals.
Sales just jumped another 51%. Return on Equity (ROI) is still in the double digits. And more than 90% of the company’s shares have been gobbled up by insiders and institutional investors.
You can’t ask for much more, which is why I wouldn’t recommend buying this stock now. Not after a nearly 10,000% move. And not when you can find similar opportunities in 2010 – companies with just as much potential as Diedrich did 12 months ago, but have yet to make their move.
In his step-by-step “millionaire’s guide“, Dr. Scott Brown shows you the secret to finding them. Once you know what the potentially best-performing stocks of next year look like before they take off, all you have to do is buy them.
How to Build A Million-Dollar Portfolio… From Scratch
1. Acceleration: Make 47% a Year In a Down Market?
Identifying the next big momentum stocks – before they make their historic upswings – is actually quite simple.
2. Mispriced Securities: Make 172% Loading Up On Value
Mispriced securities, also known as “value” stocks, belong to one of the all-time most profitable areas of the stock market.
Buffett’s used mispriced securities to turn every $500 stake in Berkshire Hathaway into more than $183,000.
Like Unitedhealth Group, the largest holding in the Legg Mason Value Trust.
The business is still growing 10% a year, but the market’s heavily oversold the stock.
3. Bank Errors: Make 45% a Day in the Lucrative IPO Market
Using my “10-Minute Hot IPO Quick Scan,” for example, you would have recognized that Changyou.com would have been a screaming buy when it debuted in April 2009.
The stock climbed 61% in its first 30 days of trading.
My QuickScan would have told you to buy Apple, too… back in 1980.
4. Executive Bias: How to Make 55% in A Matter of Weeks
David Abrams, a Director of Crown Castle International, recently made the single-largest insider purchase in the nation. He bought 4.5 million shares at a cost of more than $60 million.
Based in Houston, the company leases cell towers and antenna space to wireless communications companies. Most of these are in the United States, although more than 1,400 are in Australia.
The company has more than 24,000 towers in prime markets and is actively building more.
The most recent earnings report contained few surprises.
Revenue was still growing at 9%. And site rental revenue, gross margins and recurring cash flow all exceeded expectations.
Moreover, the company had lost three-quarters of its market value and was selling below book value.
Then the market tanked… again.
And Crown Castle soared 55%.
It was a classic “insider play.”
Last year was a disaster for most stock market investors. The S&P 500 fell 38%, its worst year since 1931.
Yet a number of stock traders could have made good money in 2008 by following the insiders…
5. Corporate “Board” Games: How to Make 37% a Day
Only one thing can cause a stock to pop 94%… 102%… 108%… even 250% higher in a matter of days or hours: an unexpected takeover bid.
It happens when companies target the shares of rivals in an effort to reduce competition, add clients and territories, gain patented technologies or enhance and expand their line of products or services.
They can be rumored or real… They can be hostile or welcomed… They can succeed or fail…
It doesn’t matter.
“When news of an unexpected takeover breaks, target stocks often lift off like rocket ships – and can make anyone holding shares a whole lot richer.
And the takeover market is heating up…
On Monday, April 21st, $24.8 billion worth of takeovers were announced. It was the third busiest Merger Monday on record in 2009.
6. Global Acceleration: 100%-Plus a Year… For the Next 30 Years
While emerging nations cover 77% of the world’s land area and represent 85% of the world’s population, they currently produce only 23% of the world’s gross domestic product.
There are now 3.8 billion “middle class” people in the world today. Thanks to emerging markets, that number will double over the next 20 years.
Companies that are busy meeting the enormous untapped needs of billions of new middle class consumers will thrive.
What’s more, the world’s developing markets are both exceptionally promising and extraordinarily cheap right now.